Just Energy Group Inc. has announced that its subsidiary's solar business, Hudson Solar, has entered into a $30 million credit agreement with Macquarie Bank Ltd.
Advances under the credit facility will be used to assist with the construction of solar projects. The credit facility has a two-year term, under which advances will be made in connection with interconnected solar projects located in the U.S. (currently, in New Jersey, Pennsylvania and Massachusetts).
Advances will bear interest, payable quarterly, at a rate of either LIBOR plus 7.9% or the ‘prime rate’ as published in the Eastern Edition of the Wall Street Journal plus 6.9%. The credit facility may be increased from time to time upon agreement by Macquarie.
The projects are eligible for U.S. federal tax incentives at 30% of the project costs. The incentives are provided in the form of an immediate cash grant (for projects completed or safe harbored by end of 2011) on investment tax credit (for projects not eligible for a cash grant).